Federal Court Clarifies the Scope of Escrow and LPO Duties Under APR 12

In a recent decision from the Western District of Washington, the court granted summary judgment in favor of an escrow company accused of negligence and legal malpractice arising from the preparation of a statutory warranty deed. The opinion offers a useful reaffirmation of several important principles under Washington’s Admission to Practice Rule 12 (APR 12):

• LPOs may tailor Board-approved forms to specific transactions — including using attachments — so long as they’re entering objective, transaction-specific data and not modifying legal terms.

• Escrow agents are bound by their instructions and are not required to identify or correct errors in title commitments issued by separate title-insurance entities.

• Disclosure duties under APR 12(e) are limited to the prescribed written advisories; LPOs are not obligated to provide broader warnings about the potential legal effects of omissions in related title documents.

This recent decision underscores how Washington courts continue to draw clear lines between limited-practice authority and the practice of law — a reminder that precise form use, clear instructions, and defined responsibilities remain essential in real-estate closings.